Switzerland: EGL Becomes Axpo

The Swiss energy supplier, Axpo, has a new organisation: In the future, EGL, which is mainly active in European energy trading, will operate under the Axpo brand.

With an optimised Group structure geared to increase profitability, Axpo wants to generate a significantly improved EBIT of over 100 million Swiss francs per year. Ensuring the security of supply for its shareholder cantons remains a central task for Axpo. In addition to expanding domestic production, Axpo aims to strengthen its position in the European energy market.

EGL has been a subsidiary of the Swiss energy supplier, Axpo, since 2002. In the spring of 2012, Axpo increased its EGL shares from 91 percent to 100 percent, and restructuring activities into the new business areas Assets (mainly Axpo AG in the past), and Trading & Sales (mainly EGL in the past). Reason: With bundled forces and a simplified structure, Axpo can act more flexibly, more quickly and more efficiently to meet the growing challenges in the energy markets and under regulatory framework conditions in the future. As of 1 October 2012, EGL and its subsidiaries will operate under the Axpo brand. This will reinforce the pan-European focus of Axpo’s trading business, develop new earning potentials, and promote synergies, which will also benefit Axpo’s clients.

The new Axpo business area Assets maintains and expands the power plant park (nuclear, hydro, gas, wind, solar, as well as biomass and geothermics), and Axpo’s power distribution grids in Switzerland. The power plant facilities of the former Axpo AG and EGL in Switzerland, as well as those of EGL in Europe, will be jointly operated. Technical optimisation of this power plant portfolio and the development of new projects and plants will also take place in Assets.

The new Axpo business area Trading & Sales bundles all the trading competencies of the former EGL and Axpo AG, and manages EGL’s international natural gas business, including the TAP project, EGL’s planned gas pipeline from Greece via Albania to Italy. EGL’s successful European hub strategy, based on market and client proximity, will continue to be the focus. The European subsidiaries will continue to maintain local roots and a consistent concentration on the requirements of the respective markets. In doing so, Axpo reinforces its position as an independent supplier of origination services. The client business with tailored energy products and innovative services will be specifically expanded for Axpo clients.

Trading & Sales will also handle the commercial optimisation of the entire power plant park. Under this commercial optimisation, the trading business will now have access to over 100 plants all over Europe.

[mappress]
LNG World News Staff, October 1, 2012